Transcript The Impact of Aviation on the US Economy

The Impact of Aviation on the
U. S. Economy
Holly Kunz
Rebecca Vredenburgh
Methodist University
Overview
 Airline Industry
 General Aviation Industry
 Jobs
 Technology and Innovation
 Domestic and International Trade
 Next Gen
 Impact of Economy on Aviation
Airline Industry
 Consists of 100 certified passenger airlines
 Conducts over 11 million passenger flight departures each
year
 Carries over one-third of the world’s air traffic
 Earned over $160 million in revenue in 2006
What are Aviations Contributions to the
U.S. Economy?
1. It creates Jobs
2. It propels Technology and Innovation
3. It facilitates global and domestic Trade
It Creates Jobs
 As of November 2010, the U.S unemployment rate was
9.8%
 Without the pool of aviation jobs, the rate would be 14%
 Civil aviation employs 10.9 million Americans
 General aviation employs 1.2 million Americans
The Aviation Industry
provides 10.9 Million U.S. Jobs
U.S. Job Impact (in millions)
Sales
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Directly
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Indirectly
Airfield Lighting, Electricians, Bird Dispersal Teams,
Technology and Innovation
Why is Aviation Technology Important
for our Economy?
 Technology is needed to reduce inefficiencies, decrease noise,
increase passenger safety, and reduce the carbon footprint on
the environment.
 Due to rising costs surrounding fuel consumption, aircraft
manufacturers and technological experts are racing to come
up with climate and cost-friendly alternatives to jet fuel.
 To reduce gas consumption and tr
Domestic and International Trade
Domestic and International Trade
 Aviation is Essential for Global Business
 It facilitates Economic Growth and World Trade
 In 2009, the value of all goods transported by air represented
35% of the world’s international trade
 The total global impact from aviation was $35 trillion or
7.5% of the world GDP
The FAA and Next-Gen
The Problem?
“Flight Delay is a serious and widespread problem in the United
States. Increasing flight delays place a significant strain on the
U.S. air travel system and cost airline, passengers, and society
billions of dollars each year… In addition to these direct
costs imposed on the airline industry and its customers, flight
delays have indirect effects on the U.S. Economy. Specifically,
inefficiency in the air transportation sector increases the cost
of doing business for other sectors, making the associated
business less productive”
Next Gen- The FAA solution to Flight
Delays
What is NEXTGEN?
- the transformation of the US national airspace system. It
represents an evolution from a ground-based system of air
traffic control to a satellite-based system of air traffic
management. This evolution is vital to meeting future
demand, to avoid gridlock in the sky and our nations
airports.
How will Next Gen improve Economy?
 How does this help the economy?
-When fully implemented, Next Gen will safely allow more
aircraft to fly more closely together on more direct routes,
reducing delays, and providing unprecedented benefits for the
environment and the economy through reductions in carbon
emissions, fuel consumption, and noise.
 Next Gen is designed to:
-Increase airport capacity
 Maximize airport capacity
 Increase airspace efficiency
 Improve fuel consumption
References